SMC + Price Action Trading Strategy
1. Market Structure Analysis:
• Identify BOS (Break of Structure) and CHoCH (Change of Character).
• Liquidity zones (equal highs/lows, stop hunts).
2. Key Price Action Concepts:
• Order blocks, supply and demand zones.
• Fair value gaps (FVGs) and imbalance trading.
• Wyckoff accumulation/distribution principles.
3. Indicators to Use (With Best Settings):
• Buy/Sell Signals (best indicator for accurate entry/exit points).
• Support and Resistance Zones (auto-detect strongest levels).
• Trend Line & Reversal Detection (for breakout and pullback confirmation).
• Volume Profile & Delta Analysis (to track smart money movements).
• Smart Money Divergence (hidden liquidity shifts).
• Candle Pattern Recognition (inside bar, engulfing, pin bar, etc.).
4. Entry & Exit Strategy:
• Best confirmations before entry (confluence of multiple indicators).
• Risk-reward ratio optimization.
• Stop-loss & take-profit rules based on SMC logic.
5. Timeframes to Trade:
• Which timeframes work best for scalping, intraday, and swing trading.
6. Additional Trading Filters:
• High-impact news filter to avoid stop hunts.
• Sessions-based strategy (London/NY open).
Please provide a fully optimized trading strategy, including how to set up the indicators on TradingView and the best way to execute trades with high accuracy. The goal is to maximize profits while minimizing risk using Smart Money Concepts (SMC),
Moyenne mobile simple (SMA)
Major Moving Averages EMA SMA Fill And Cross With AlertsMajor Moving Averages EMA/SMA Fill and Cross With Alerts
This indicator provides a comprehensive visualization of major moving averages (EMAs and SMAs) with optional fill zones between them. It helps traders identify trend shifts, confluence areas, and price positioning relative to key moving averages.
Features:
✅ Multiple Moving Averages:
Includes four major moving average pairs with customizable periods:
Slowest: 200 EMA & 200 SMA
Slow: 50 EMA & 50 SMA
Fast: 21 EMA & 20 SMA (Bollinger Band Center)
Fastest: 10 EMA & 7 SMA
✅ Cross Alerts:
Get notified when the EMAs or SMAs cross, helping to identify trend changes.
✅ Fill Zones (Optional):
Highlights the gaps between moving averages for better trend clarity.
✅ Bollinger Bands Integration:
Plots standard Bollinger Bands (20 SMA with customizable standard deviation).
✅ Price in Fill Zone Alerts:
Notifies when price is trading within the filled regions, helping to spot areas of confluence.
This tool is ideal for traders who rely on moving averages for trend analysis, dynamic support/resistance, and confluence zones.
MTF Ichimoku Conversion Line SMA with H/L mirrored levelsWelcome to MTF Ichimoku Conversion Line with SMA Highs/Lows Extended Lines!
1. Overview
It is designed to provide a multi-timeframe view of market trends and potential support/resistance levels by obtaining a Simple Moving Average (SMA) of the Conversion Line of Ichimoku Equibilium (Ichimoku Kinko-Hyo), which acts as a substantial trend line on the candlestick chart. The SMA of the conversion line smooths out price fluctuations and indicates the overall trend direction—if the candles are above it, the trend can be read as an uptrend, while below it, the trend can be read as a downtrend.
2. Calculation
The indicator first calculates the Conversion Line (see the description of Ichimoku theory anywhere, e.g., Wikipedia), as the average of the highest high and lowest low over a user-defined period (Conversion Line Length, default is 9, also recommended is 9).
It then retrieves this Conversion Line from a higher timeframe (MTF Timeframe) to add a broader perspective. Using a specified period (SMA Length)., an SMA is computed on this multi-timeframe conversion line. This SMA serves as a trend line that visually represents the prevailing price trend, making it easier to assess market direction.
3. Pivot Highs/low detection and drawing their extensions
In addition, the indicator identifies pivot highs and lows from the SMA data using a defined pivot length. When these pivots occur, horizontal lines are drawn and extended across the chart. These extended lines (drawn in a yellowish color by default) include a full extension, a half extension, and a middle extension line representing the midpoint between the high and low pivot.
4. Mirror lines
The indicator also offers optional mirror line features. When the Mirror Upside option is enabled, five additional lines are drawn above the highest extended yellow line at equal intervals. Similarly, when the Mirror Downside option is enabled, five lines are drawn below the lowest extended yellow line. These light gray mirror lines serve as extra reference levels, which can help identify potential support or resistance zones.
5. Parameters
User parameters include:
- Conversion Line Length: The period used to calculate the conversion line.
- MTF Timeframe: The higher timeframe from which the conversion line is obtained.
- SMA Length: The period over which the SMA is calculated on the conversion line.
- SMA Mode: A toggle to display either the SMA or the raw conversion line (SMA recommended).
- SMA Line Width: The thickness of the SMA line.
- Pivot Length for SMA Highs/Lows: The period used to detect pivot highs and lows in the SMA.
- Horizontal Extension: Number of bars by which the pivot and extended lines are drawn across the chart
- Colors for High and Low Pivot Lines and Extended Lines: Customizable colors are used to draw the lines.
Mirror Upside and Mirror Downside: These options enable drawing additional mirror lines above and below the extended lines.
- Hide Old Lines: An option to hide previous pivot lines once new ones are drawn for a cleaner chart. Turned on by default.
6. Conclusion
Overall, the Conversion Line SMA in this indicator smooths out the conversion line data and effectively functions as a trend line for the candlestick chart, helping traders visually interpret the underlying market trend. The extended and mirror lines provide further context for potential price reversal or continuation areas, making this a powerful tool for multi-timeframe technical analysis.
Smart MA Crossover BacktesterSmart MA Crossover Backtester - Strategy Overview
Strategy Name: Smart MA Crossover Backtester
Published on: TradingView
Applicable Markets: Works well on crypto (tested profitably on ETH)
Strategy Concept
The Smart MA Crossover Backtester is an improved Moving Average (MA) crossover strategy that incorporates a trend filter and an ATR-based stop loss & take profit mechanism for better risk management. It aims to capture trends efficiently while reducing false signals by only trading in the direction of the long-term trend.
Core Components & Logic
Moving Averages (MA) for Entry Signals
Fast Moving Average (9-period SMA)
Slow Moving Average (21-period SMA)
A trade signal is generated when the fast MA crosses the slow MA.
Trend Filter (200-period SMA)
Only enters long positions if price is above the 200-period SMA (bullish trend).
Only enters short positions if price is below the 200-period SMA (bearish trend).
This helps in avoiding counter-trend trades, reducing whipsaws.
ATR-Based Stop Loss & Take Profit
Uses the Average True Range (ATR) with a multiplier of 2 to calculate stop loss.
Risk-Reward Ratio = 1:2 (Take profit is set at 2x ATR).
This ensures dynamic stop loss and take profit levels based on market volatility.
Trading Rules
✅ Long Entry (Buy Signal):
Fast MA (9) crosses above Slow MA (21)
Price is above the 200 MA (bullish trend filter active)
Stop Loss: Below entry price by 2× ATR
Take Profit: Above entry price by 4× ATR
✅ Short Entry (Sell Signal):
Fast MA (9) crosses below Slow MA (21)
Price is below the 200 MA (bearish trend filter active)
Stop Loss: Above entry price by 2× ATR
Take Profit: Below entry price by 4× ATR
Why This Strategy Works Well for Crypto (ETH)?
🔹 Crypto markets are highly volatile – ATR-based stop loss adapts dynamically to market conditions.
🔹 Long-term trend filter (200 MA) ensures trading in the dominant direction, reducing false signals.
🔹 Risk-reward ratio of 1:2 allows for profitable trades even with a lower win rate.
This strategy has been tested on Ethereum (ETH) and has shown profitable performance, making it a strong choice for crypto traders looking for trend-following setups with solid risk management. 🚀
RSI Breakout Strategy with RR 1:4Open a Long Position when:
The RSI price rises above the line joining the previous highs of RSI.
The stoploss is set at the previous candle's low.
The take profit is set at a risk-to-reward ratio of 1:4.
Open a Short Position when:
The RSI price falls below the line joining the previous lows of RSI.
The stoploss is set at the previous candle's high.
The take profit is set at a risk-to-reward ratio of 1:4
House of Traders: 200 Simple Moving Average (SMA) on ChartThe 200 SMA Indicator calculates the 200-day Simple Moving Average (SMA) based on the closing price and displays it as a blue line on the chart.
Length: 200 periods (days).
Source: Closing price.
Visual: Blue line, plotted directly on the price chart for easy reference.
About House of Traders:
House of Traders offers comprehensive coaching and training for day traders, focusing on building consistent trading skills through personalized guidance. Whether you're a beginner or experienced trader, House of Traders provides a proven framework to help you trade with confidence. Join the community and start mastering the U.S. stock market with expert insights and daily trade ideas tailored to your goals.
Important Links
houseoftraders.nl
instagram.com/houseoftraders.nl
instagram.com/casper.wildemast
House of Traders: 50 Simple Moving Average (SMA) on ChartThe 50 SMA Indicator calculates the 50-day Simple Moving Average (SMA) based on the closing price and displays it as a yellow line on the chart.
Length: 50 periods (days).
Source: Closing price.
Visual: Blue line, plotted directly on the price chart for easy reference.
About House of Traders:
House of Traders offers comprehensive coaching and training for day traders, focusing on building consistent trading skills through personalized guidance. Whether you're a beginner or experienced trader, House of Traders provides a proven framework to help you trade with confidence. Join the community and start mastering the U.S. stock market with expert insights and daily trade ideas tailored to your goals.
Important Links
houseoftraders.nl
instagram.com/houseoftraders.nl
instagram.com/casper.wildemast
House of Traders: 20 Simple Moving Average (SMA) on ChartThe 20 SMA Indicator calculates the 20-day Simple Moving Average (SMA) based on the closing price and displays it as a blue line on the chart.
Length: 20 periods (days).
Source: Closing price.
Visual: Blue line, plotted directly on the price chart for easy reference.
About House of Traders:
House of Traders offers comprehensive coaching and training for day traders, focusing on building consistent trading skills through personalized guidance. Whether you're a beginner or experienced trader, House of Traders provides a proven framework to help you trade with confidence. Join the community and start mastering the U.S. stock market with expert insights and daily trade ideas tailored to your goals.
Important Links
houseoftraders.nl
instagram.com/houseoftraders.nl
instagram.com/casper.wildemast
EMA/MA i Year Open Price (4h/1D/1W)This script calculates and plots various Exponential Moving Averages (EMAs) and Simple Moving Averages (MAs) for different timeframes on a TradingView chart. It also calculates the MACD (Moving Average Convergence Divergence) and highlights significant crossovers as buy or sell signals. Additionally, the script marks the first opening price of the year and differentiates between periods when the closing price is above or below certain moving averages.
4 Moving AveragesQuatro médias móveis simples no mesmo indicador. Possibilidade de ligar ou desligar individualmente cada uma
BTC SMA Crossover Bot – Your Automated Bitcoin Trading Sidekick!🚀 BTC SMA Crossover Bot – Your Automated Bitcoin Trading Sidekick! 🤖💰
A sleek, no-nonsense trading bot designed to catch Bitcoin’s best moves using Simple Moving Average (SMA) crossovers! 📊🔥 Built for TradingView and ready to automate your trades on crypto exchanges, this bot helps you ride the trends like a pro!
🎯 Key Features
📈 Dual SMA Strategy
⚡ Fast SMA (20-period): Tracks short-term momentum.
🐢 Slow SMA (50-period): Detects long-term trend direction.
✅ Buy Signal: When the 20 SMA crosses above the 50 SMA (bullish breakout!) 🚀
❌ Sell Signal: When the 20 SMA crosses below the 50 SMA (bearish alert!) 📉
🛡️ Risk Management – Because Safety First!
🔹 ATR-Based Stop-Loss: Auto-adjusting stop-loss to handle BTC’s wild swings! 🎢
🔹 Take-Profit Targets: Smart profit-taking at 1:2 or 1:3 risk-reward. 💰
🔹 Position Sizing: Risk ≤2% per trade – no YOLO trading here! 😅
🔍 Enhanced Trade Filters – Avoid the Fakeouts!
📊 RSI Momentum Check: Skip those nasty overbought/oversold traps.
📈 Volume Confirmation: Only enter trades when volume is 1.5x the average – no weak signals allowed! 💪
📉 Trend Alignment: Stay on the right side of the market with higher timeframe trends (SMA50 > SMA200 on daily charts).
🤖 Automation Ready – Set It and Let It Run!
🔔 TradingView Alerts: Get instant buy/sell signals via email, SMS, or API. 📩
🎮 Paper Trading: Test your strategy risk-free on Binance Testnet or Bybit Demo.
🛠️ How It Works – Simple Yet Powerful!
1️⃣ Trend Detection: The bot watches for SMA crossovers to spot Bitcoin’s next big move. 👀
2️⃣ Entry/Exit Rules:
BUY when 20 SMA crosses above 50 SMA + RSI > 40 + volume spike. 🚀
SELL when 20 SMA crosses below 50 SMA + RSI < 60. 📉
3️⃣ Dynamic Adjustments: Stop-loss and take-profit levels update automatically with each new candle!
❓ Why Use This Bot?
✔ Super Simple – No confusing indicators, great for beginners! 🎯
✔ Adaptable – Works on multiple timeframes (1H for swing trades, 15M for scalping).
✔ Backtested Success – 63% win rate on BTC/USD (2020-2023 data). 📊
✔ Fully Customizable – Adjust SMA lengths, filters, and risk settings to match your trading style!
🔥 Pro Tips for Maximum Gains!
⏳ Best Timeframe: Use 4H charts to filter out false signals.
📰 Extra Edge: Pair with liquidation heatmaps or news sentiment tools.
📉 Reduce Slippage: Set slippage to 0.5% for more realistic crypto trade fills.
🚀 Who Should Use This?
💎 Trend Followers – Ride Bitcoin’s best moves with ease!
📊 Swing Traders – Catch profitable setups without staring at charts all day.
🤖 Crypto Investors – Automate your BTC trades & save time!
⚠️ Always test with paper trading before going live! ⚠️
Now, let’s automate your Bitcoin trading and level up your strategy! 🚀💰
EMA/SMA Ribbon Pro (AUTO HTF + Labels)This indicator is a multi-timeframe (MTF) moving average ribbon that dynamically adjusts to the next highest timeframe. It provides a visual representation of market trends by stacking multiple EMAs and SMAs with customizable color fills and labels.
Features
✅ Multi-Timeframe (MTF) Support: Automatically detects the next highest time frame or allows for manual selection
✅ Customizable Moving Averages: Supports EMA and SMA with different lengths for flexible configuration
✅ Ribbon Visualization: Smooth color transitions between different moving averages for better trend identification
✅ Crossover Labels: Detects bullish and bearish EMA/SMA crossovers and marks them on the chart
✅ Price Labels & Timeframe Display: Displays moving average values to the right of the price axis with customizable label padding and colors
How It Works
Select the HTF mode: Manual or automatic
Choose EMA/SMA lengths to create different ribbons
Enable/disable price labels for each moving average
Customize colors and transparency for ribbons and labels
Crossover labels appear when faster moving averages cross slower ones and vice versa
Use Cases
📌 Trend Identification: Identify bullish and bearish trends using multiple EMAs and SMAs
📌 Support & Resistance Zones: MAs can act as dynamic support and resistance levels
📌 Reversal & Confirmation Signals: Watch for MTF crossovers to confirm trend changes
Customization
🔹 Standard EMA Lengths: 6, 8, 13, 21, 34, 48, 100, 200, 300, 400
🔹 SMA Lengths: 48, 100, 200
🔹 Color Adjustments: Set custom colors for bullish/bearish ribbons
🔹 Crossovers: Enable/disable custom crossover pairs (e.g., 100/200 EMA, 200 EMA/SMA).
This indicator is perfect for traders who rely on multi-timeframe confluence while seeking to enhance their market analysis and decision-making process.
As always, by combining EMA/SMA Ribbon with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
As always, be sure to use any indicator with price action and volume indicators for better trade confirmation!
SMA + Stochastic RSI + ADX Strategy (5M)This script implements a strategy that uses:
✅ SMA 20 and SMA 200 crossover (trend identification)
✅ Stochastic RSI (entry point filtering)
✅ ADX > 25 (trend strength determination)
✅ Trailing stop (profit locking)
✅ Position reversal when the trend changes
🔹 How does the strategy work?
📌 Entry for BUY
✅ SMA 20 crosses above SMA 200
✅ ADX > 25 (strong trend)
✅ Stochastic RSI is below 20 and crosses up
✅ Price is above the average ATR (sufficient volatility)
➡ Open a BUY trade
📌 Entry for SELL
✅ SMA 20 crosses below SMA 200
✅ ADX > 25 (strong trend)
✅ Stochastic RSI is above 80 and crosses down
✅ Price is above the average ATR
➡ Open a SELL trade
📌 Position Reversal
✅ If there was a BUY, but a SELL signal appears → close BUY, open SELL.
✅ If there was a SELL, but a BUY signal appears → close SELL, open BUY.
✅ 2-candle delay before re-entering to avoid false signals.
📌 Exit from trade
✅ Trailing stop (50 pips, step 10) — locks in profits.
✅ Reversal — closes the current trade and enters the opposite one.
🔹 Why does this strategy work ?
✅ SMA 20 and 200 — excellent trend indicators.
✅ ADX > 25 — helps avoid flat markets and false signals.
✅ Stochastic RSI — a precise oscillator that shows entry points.
✅ Trailing stop — protects profits, especially with gold’s high volatility.
✅ Position reversal — always in the market, minimizing missed moves.
🔹 Customize it!
Feel free to adjust and fine-tune the parameters to match your trading style. Good luck!
EMA & SMA (with Dynamic Shading & Signal Alerts)This indicator combines four key Fibonacci-based moving averages (12 EMA, 21 EMA, 30 SMA, and 200 SMA) to help traders identify trend direction, momentum shifts, and potential entry/exit points.
Features:
✅ Multi-Timeframe Trend Tracking – Tracks short-term (12 & 21 EMA) and long-term (30 & 200 SMA) trends.
✅ Dynamic Background Shading – Highlights areas above/below each moving average for clear trend visualization.
✅ Crossover Buy & Sell Signals – Plots entry/exit signals when price crosses above or below moving averages.
✅ Customizable Inputs – Adjust moving average lengths, shading transparency, and signal visibility.
✅ Alerts for Key Crossovers – Get notified when price crosses above/below EMA 12 and EMA 21.
How to Use:
📌 Trend Confirmation: When price is above all moving averages, the trend is bullish; when below, the trend is bearish.
📌 Entry Signals: Bullish crossovers (price moving above EMAs) indicate potential buy setups.
📌 Exit Signals: Bearish crossunders (price moving below EMAs) suggest potential sell setups.
📌 Support & Resistance: The 200 SMA acts as a long-term trend filter and potential support/resistance level.
This tool is ideal for swing traders, intraday traders, and momentum traders looking to align their trades with the dominant trend. 🚀
📈 Try it out and customize to fit your strategy!
Golden Cross 50/200Simple Golden and Death Cross detection 50/200 SMA.
Death Cross in Red and Golden Cross Yellow.
Add Text box at each detection point.
EMA Cross 50/20The EMA Cross 50/20 Indicator is a simple yet effective tool designed for traders to identify potential trend reversals and trading opportunities based on exponential moving average (EMA) crossovers.
How It Works:
The indicator plots two EMAs on the chart:
50-period EMA (Red) – Represents a longer-term trend.
20-period EMA (Blue) – Represents a shorter-term trend.
A crossover occurs when the 20 EMA crosses above or below the 50 EMA, which may signal a trend change.
Key Features:
✅ Clear Crossover Visualization – The indicator marks crossover points with an "X" on the chart.
✅ Trend Confirmation – Helps traders confirm bullish or bearish trends.
✅ Customizable & Simple – Easy to use and modify for different trading styles.
Trading Signals:
Bullish Signal: When the 20 EMA crosses above the 50 EMA, it may indicate a potential uptrend.
Bearish Signal: When the 20 EMA crosses below the 50 EMA, it may indicate a potential downtrend.
This indicator is ideal for traders looking to incorporate EMA crossovers into their strategy for identifying trend shifts in various markets. 🚀
Candle Cross Moving AverageИндикатор рисует двухцветный Moving Average (MA):
1. Синий цвет - цена открытия и закрытия предыдущего бара выше линии MA.
2. Красный цвет - цена открытия и закрытия предыдущего бара ниже линии MA.
Так же в настройках можно менять:
1. тип MA (Simple, Exponential, Smoothed, Linear);
2. период MA;
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The indicator plots a two-colored Moving Average (MA):
Blue color — the previous bar’s open and close prices are above the MA line.
Red color — the previous bar’s open and close prices are below the MA line.
Customizable settings:
MA type (Simple, Exponential, Smoothed, Linear);
MA period.
Sma Indicator with Ratio (pr)SMA Indicator with Ratio (PR) is a technical analysis tool designed to provide insights into the relationship between multiple Simple Moving Averages (SMAs) across different time frames. This indicator combines three key SMAs: the 111-period SMA, 730-period SMA, and 1400-period SMA. Additionally, it introduces a ratio-based approach, where the 730-period SMA is multiplied by factors of 2, 3, 4, and 5, allowing users to analyze potential market trends and price movements in relation to different SMA levels.
What Does This Indicator Do?
The primary function of this indicator is to track the movement of prices in relation to several SMAs with varying periods. By visualizing these SMAs, users can quickly identify:
Short-term trends (111-period SMA)
Medium-term trends (730-period SMA)
Long-term trends (1400-period SMA)
Additionally, the multiplied versions of the 730-period SMA provide deeper insights into potential price reactions at different levels of market volatility.
How Does It Work?
The 111-period SMA tracks the shorter-term price trend and can be used for identifying quick market movements.
The 730-period SMA represents a longer-term trend, helping users gauge overall market sentiment and direction.
The 1400-period SMA acts as a very long-term trend line, giving users a broad perspective on the market’s movement.
The ratio-based SMAs (2x, 3x, 4x, 5x of the 730-period SMA) allow for an enhanced understanding of how the price reacts to higher or lower volatility levels. These ratios are useful for identifying key support and resistance zones in a dynamic market environment.
Why Use This Indicator?
This indicator is useful for traders and analysts who want to track the interaction of price with different moving averages, enabling them to make more informed decisions about potential trend reversals or continuations. The added ratio-based values enhance the ability to predict how the market might react at different levels.
How to Use It?
Trend Confirmation: Traders can use the indicator to confirm the direction of the market. If the price is above the 111, 730, or 1400-period SMA, it may indicate an uptrend, and if below, a downtrend.
Support/Resistance Levels: The multiplied versions of the 730-period SMA (2x, 3x, 4x, 5x) can be used as dynamic support or resistance levels. When the price approaches or crosses these levels, it might indicate a change in the trend.
Volatility Insights: By observing how the price behaves relative to these SMAs, traders can gauge market volatility. Higher multiples of the 730-period SMA can signal more volatile periods where price movements are more pronounced.
EMA CROSS v1.0 by ScorpioneroIndicator Description: Multi-Timeframe SMA Table & Plot
This indicator displays a structured table of Simple Moving Averages (SMA) across multiple timeframes and plots them directly on the chart for better trend analysis.
Features:
✅ Multi-Timeframe SMA Calculation: Computes SMAs for different periods (10, 60, and 223) across six timeframes (1m, 3m, 5m, 15m, 30m, 60m).
✅ Sorted SMA Table: Displays a table in the bottom-right corner of the chart, showing the three SMAs per timeframe, sorted in descending order.
✅ Color-Coded Cells: Each SMA is highlighted with a specific color:
🟡 Yellow → 10-period SMA
🔵 Blue → 60-period SMA
🟣 Purple → 223-period SMA
⚪ Gray → Other values
✅ SMA Plotting on the Chart: All calculated SMAs are plotted directly on the price chart, allowing users to visualize their interaction with price movements.
How to Use:
The table provides a quick overview of SMA rankings across timeframes, helping identify bullish or bearish trends.
The SMA plots on the chart can be used for dynamic support/resistance analysis and trend confirmation.
This indicator is ideal for traders who rely on multi-timeframe trend analysis to make informed trading decisions! 🚀
by Scorpionero
Custom Length Moving AverageThe Custom Length Moving Average is a dynamic indicator that allows traders to plot a moving average with an adjustable length based on their preferred number of days. Users can choose between Simple Moving Average (SMA), Exponential Moving Average (EMA), or Weighted Moving Average (WMA) to match their trading strategy. The script automatically calculates the moving average length by factoring in the chart’s timeframe and trading session duration, ensuring precision and adaptability. This makes it an ideal tool for traders looking for a flexible moving average that adjusts to different market conditions and timeframes.
AI Volume Breakout for scalpingPurpose of the Indicator
This script is designed for trading, specifically for scalping, which involves making numerous trades within a very short time frame to take advantage of small price movements. The indicator looks for volume breakouts, which are moments when trading volume significantly increases, potentially signaling the start of a new price movement.
Key Components:
Parameters:
Volume Threshold (volumeThreshold): Determines how much volume must increase from one bar to the next for it to be considered significant. Set at 4.0, meaning volume must quadruplicate for a breakout signal.
Price Change Threshold (priceChangeThreshold): Defines the minimum price change required for a breakout signal. Here, it's 1.5% of the bar's opening price.
SMA Length (smaLength): The period for the Simple Moving Average, which helps confirm the trend direction. Here, it's set to 20.
Cooldown Period (cooldownPeriod): Prevents signals from being too close together, set to 10 bars.
ATR Period (atrPeriod): The period for calculating Average True Range (ATR), used to measure market volatility.
Volatility Threshold (volatilityThreshold): If ATR divided by the close price exceeds this, the market is considered too volatile for trading according to this strategy.
Calculations:
SMA (Simple Moving Average): Used for trend confirmation. A bullish signal is more likely if the price is above this average.
ATR (Average True Range): Measures market volatility. Lower volatility (below the threshold) is preferred for this strategy.
Signal Generation:
The indicator checks if:
Volume has increased significantly (volumeDelta > 0 and volume / volume >= volumeThreshold).
There's enough price change (math.abs(priceDelta / open) >= priceChangeThreshold).
The market isn't too volatile (lowVolatility).
The trend supports the direction of the price change (trendUp for bullish, trendDown for bearish).
If all these conditions are met, it predicts:
1 (Bullish) if conditions suggest buying.
0 (Bearish) if conditions suggest selling.
Cooldown Mechanism:
After a signal, the script waits for a number of bars (cooldownPeriod) before considering another signal to avoid over-trading.
Visual Feedback:
Labels are placed on the chart:
Green label for bullish breakouts below the low price.
Red label for bearish breakouts above the high price.
How to Use:
Entry Points: Look for the labels on your chart to decide when to enter trades.
Risk Management: Since this is for scalping, ensure each trade has tight stop-losses to manage risk due to the quick, small movements.
Market Conditions: This strategy might work best in markets with consistent volume and price changes but not extreme volatility.
Caveats:
This isn't real AI; it's a heuristic based on volume and price. Actual AI would involve machine learning algorithms trained on historical data.
Always backtest any strategy, and consider how it behaves in different market conditions, not just the ones it was designed for.
John Bob-Trading-BotDeveloped by Ayebale John Bob with the help of his bestie, this innovative strategy combines advanced Smart Money Concepts with practical risk management tools to help traders identify and capitalize on key market moves.
Key Features:
Smart Money Concepts & Fair Value Gaps (FVG):
The strategy monitors price action for fair value gaps, which are visualized as extremely faint horizontal lines on the chart. These FVGs signal potential areas where institutional traders might have entered or exited positions.
Dynamic Entry Signals:
Buy signals are triggered when the price crosses above the 50-bar lowest low or when a bullish FVG is detected. Conversely, sell signals are generated when the price falls below the 50-bar highest high or a bearish FVG is identified. Each signal is visually marked on the chart with clear buy (green) and sell (red) labels.
Multi-Level Order Execution:
Once an entry signal occurs, the strategy places five separate orders, each with its own take-profit (TP) level. The TP levels are calculated dynamically using the Average True Range (ATR) and a set of predefined multipliers. This allows traders to scale out of positions as the market moves favorably.
Dynamic Risk Management:
A stop-loss is automatically set at a distance determined by the ATR, ensuring that risk is managed in accordance with current market volatility.
Real-Time Trade Information Table:
In the bottom-right corner of the chart, a trade information table displays essential details about the current trade:
Side: Displays "BUY NOW" (with a dark green background) for long entries or "SELL NOW" (with a dark red background) for short entries.
Entry Price & Stop-Loss: Shows the entry price (highlighted in green) and the corresponding stop-loss level (highlighted in red).
Take-Profit Levels: Lists the five TP levels, each of which turns green once the market price reaches that target.
Timer: A live timer in minutes counts from the moment the current trade trigger started, helping traders track the duration of their active trades.
Visual Progress Bar:
A histogram-style progress bar is plotted on the chart, visually representing the percentage gain (or loss) relative to the entry price.
This strategy was meticulously designed to incorporate both technical analysis and smart risk management, offering a robust trading solution that adapts to changing market conditions. Whether you're a seasoned trader or just starting out, the AyebaleJohnBob Trading Bot equips you with the tools and visual cues needed to make well-informed trading decisions. Enjoy a seamless blend of strategy and style—crafted with passion by Ayebale John Bob and his bestie!